VBF 2015: Challenges Seen in New Phase

 

The forum is a direct dialogue for the Government of Vietnam and domestic and international business communities to seek solutions to improve business conditions to boost private sector development, facilitate the investment climate, and sustain Vietnam’s economic growth.

 

Addressing the forum, Deputy Prime Minister Vu Van Ninh said Vietnam has managed to achieve basic goals like macroeconomic stability, inflation controlled at a low level, and stable financial system in 2015 in spite of complicated global developments. Ease of doing business environment climbed three places; and economic growth reached 6 percent in the first nine months and expected to climb 6.2 - 6.5 percent in 2015.

He said Vietnam will strive for continued macroeconomic stability, higher economic growth, accelerated economic restructuring and growth model change in 2016. Vietnam has been extensively integrated into the world economy and negotiated to conclude new-generation free trade agreements (FTAs) such as Trans-Pacific Partnership (TPP), Vietnam - EU Free Trade Agreement, and Vietnam - Eurasian Economic Union Free Trade Agreement to create synergised forces to bring the economy and businesses to a new phase of development.

 

 

Deputy Prime Minister Ninh appreciated the efforts of domestic and international companies and business associations in the past time and hoped that the business community will continue to change for sharper competitiveness in the new period.

 

He expected that both domestic and foreign businesses will actively restructure, improve governance and enhance competitiveness to stand firmly in Vietnam market and reach out to global markets. Deputy Prime Minister Ninh confirmed that the Government pledged to stand by businesses and listen to their ideas to seek solutions to their problems and ensure their legitimate, lawful rights and interests.

 

In his opening speech, Minister of Planning and Investment Bui Quang Vinh said Vietnam’s institutional reforms and economic restructuring are taking place drastically to improve its competitiveness. In spite of some improvements, there remain a lot of things ahead to be done to improve the business environment.

 

Economic productivity and growth quality, administrative reform, anti-corruption as well as preparations for deeper integration into the world economy are exposing shortcomings. Although institutions of the business environment have been much improved, enforcement is still weak.

 

He said Vietnam is perfecting its market economy institutions and there is still a lot of work to be done while the economy is fraught with limitations and faced numerous challenges, particularly at the back of global economic integration. Vietnam vitally needs to improve corporate competitiveness and perfect its regulatory system as it is prepared for its entry into the ASEAN Economic Community (AEC) and signing and negotiations of FTAs.

 

Ms Virginia B. Foote, Governor on the American Chamber of Commerce (AmCham) in Hanoi and Co-chair of VBF Consortium’s Management Board, said since the Mid-term VBF in June, there has been remarkable progress in important matters concerning enterprises in Vietnam, particularly after the conclusion of TPP in October 2015, commitments stated in Resolution 19 in 2015, and many important legal documents issued and enforced in 2015.

 

However, to create a favourable and equitable business environment for all companies, she advised that Vietnam should introduce anti-corruption solutions and ease administrative burdens by reducing ready cash, papers and direct-payment transactions among businesses and between businesses and government. Besides, what Vietnam should care more is to improve hardware infrastructure, energy production, power and coal development, and industrial development plans.

 

VCCI President Vu Tien Loc, Co-chair of VBF 2015, said that institutional reform is generally good but yet to meet expectations of the business community. He added that the biggest concern is Vietnam's economy is advancing its deep integration but the private sector is still "lonely". Thus, in 2016 - the year that some FTAs are expected to take effect, VCCI will work hard to form business alliances and encourage domestic private businesses to take part in global chains. Policies will focus supports on specific sectors rather than individual enterprises.